The PUC lowered gas rates for electric utilities.

For the second time in two months, the state Public Utility Commission approved a request by Southern California Gas to cut the rates that it charges for natural gas used to produce electricity. The cuts were needed to prevent Southern California Edison and other major electric utilities from switching to oil, which has dropped sharply in price recently. But the PUC noted that the new gas price is so low that the electric producers’ contribution to the gas company’s fixed costs is “virtually nil.” That could mean higher rates for residential customers unless the gas utility wins sharply reduced prices from pipeline companies.